Starboard says chipmaker Mellanox's 2018 targets insufficient

Reuters News
Posted: Jan 08, 2018 6:28 AM

(Reuters) - Activist hedge fund Starboard Value LP said on Monday Israeli chipmaker Mellanox Technologies Ltd's 2018 targets were insufficient and too heavily reliant on revenue growth.

In December, Mellanox had forecast low to mid-teens revenue growth in 2018.

The targets are "not nearly enough" to offset years of poor performance and missed expectations, Starboard, Mellanox's biggest shareholder, said in a letter to the company.

(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Savio D'Souza)